Structures and Buildings Allowance

Question 1

Introduction

When is a SBA Claim Unavailable?

Answer 1

Where Taxable Trading Profits are Calculated Using the Cash Basis.

Question 2

Introduction

What Buildings Qualify for the SBA?

Answer 2

• New Buildings and Structures;
• Renovation or Conversion of an Existing Building.

Construction Must Occur on or After 29 October 2018.

Question 3

Amount of Relief

How is the SBA Calculated?

Answer 3

Qualifying Expenditure x 3% Per Annum

2% Prior to 6 April 2020.

Question 4

Amount of Relief

The SBA is Time-Apportioned in:

Answer 4

• Accounting Period of Construction/Purchase and Sale;
• Long or Short Accounting Periods.

Question 5

Qualifying Expenditure

Expenditure Qualifying for an SBA Claim Includes:

Answer 5

• Construction Costs;
• Land Preperation Costs;
• Demolition Costs.

Question 6

Allowance Statement

An Allowance Statement Details:

Answer 6

• A Contract’s Date for Construction;
• Qualifying Expenditure;
• The Date of First Business Use.

Required to Make a Claim

Question 7

Use of Building

In What Situation can the SBA Still be Claimed?

Answer 7

Where Use of the Building Ceases.

Treated as Being Used for Business Purposes

Question 8

Use of Building

How is Qualifying Expenditure Apportioned if There is Business and Residential Use?

Answer 8

On a Just and Reasonable Basis.

No Relief is Available if Business Use is Insignificant or a Home Office.

Question 9

Interaction with Capital Gains Tax

What Must be Added to a Building’s Eventual Sale Proceeds?

Answer 9

The Total Amount of SBAs Claimed.